Calculate the pv of the expected profits of the investment

Assignment Help Business Economics
Reference no: EM131376429

Fred is considering the purchase of a lease that will allow him to operate a restaurant at the local airport for a period of five years. The lease will cost $32,000 annually along with monthly operation costs of 4,000. Fred anticipates monthly revenues of $15,000. Calculate the PV of the expected profits of the investment?

Reference no: EM131376429

Questions Cloud

What are the bottlenecks with an email communication process : What are the redundancies associated with an email communication process?- What are the bottlenecks with an email communication process?
Optimal price and quantity for the monopolist : What is the optimal price and quantity for the monopolist? Illustrate this using an appropriate diagram. On the same diagram, also show the marginal revenue curve.
What should employer have done about the harassing actions : Outline the case, using the standard legal outline headings. (See "Sample Outline for Legal Cases" in Course Materials.). After your outline, write a paragraph answer to the question: "What should the employer have done about the harassing actions ..
Customize your google home page as a digital dashboard : Visit iGoogle and determine how you could customize your Google home page as a digital dashboard for your computer.
Calculate the pv of the expected profits of the investment : Fred is considering the purchase of a lease that will allow him to operate a restaurant at the local airport for a period of five years. The lease will cost $32,000 annually along with monthly operation costs of 4,000. Fred anticipates monthly revenu..
Minuet corporation of boise : You are given the following information for units 0-6 that are produced by The Minuet Corporation of Boise, Idaho. The average fixed cost of unit 4 is $38.50; The total variable cost of unit 3 is $165.00.
Which shopping bot was the easiest to use : Will you continue using shopping bots? What are the advantages and disadvantages for a company using shopping bots to purchase office supplies or raw materials?
Review ritas problem in the light of sexual harassment laws : Review Rita's problem in the light of Sexual Harassment laws and related cases. Next go over the legal case "Harris v. Forklift Systems, Inc.," 510 U.S. 17 (1993).
Describe the notion of executive attention : Describe the notion of executive attention, and relate it to operation span, inhibition, and the Stroop effect

Reviews

Write a Review

Business Economics Questions & Answers

  Considering building highway through undeveloped wilderness

The state of Minnesota is considering building a highway through undeveloped wilderness. The construction will take 1 year and the construction costs are estimated at $10 million. The annual routine maintenance costs are expected to be $1 million per..

  The most-favored-nation policy implies

The most-favored-nation policy implies that the United States will

  Why does the aggregate demand curve slope downward

Why does the aggregate demand (AD) curve slope downward? What could cause the AD curve to shift to the right? What impact would a rightward shift of the AD curve have on the economy?

  Think is likely to happen to the relative value of the euro

The Eurozone has some countries with severe debt problems: Portugal, Ireland, Italy, Greece and Spain ... sometimes known as PIIGS. These Euro countries are looking for and have been assured of a "bail-out" process so that no one defaults on their de..

  Made to social security

What changes do you feel are likely to be made to Social Security in the next 15 to 20 years? Why? Think of the people/organizations affected by the change, and who would support the change and who would fight it.

  Evaluate one of the strategies of the federal reserve

Explain the role of the Federal Reserve, who monitors it and is it effective in its job? Evaluate one of the strategies of the Federal Reserve.

  Suppose the consumption expenditure

Suppose the consumption expenditure is C = $100 billion + 0.9*Y. Investment (I) is $100 billion, government spending (G) is $50 billion and exports (X) are $100 billion. Imports depend on the level of income as follows: M = 0.1*Y. Calculate the equil..

  Bell curve type analysis is inappropriate

This will be a real challenge, but it should be an interesting challenge. Much of the way we measure risk relies on probability distribution. For many things in life, and business, this is perfectly valid, but for others it is not. Can you come up wi..

  Optimality condition for maximization of utility function

What is the optimality condition for the maximization of the utility function U (x,y) = xy^3 and the prices (Px,Py) = (2,.0.5)? Using the utility function and optimality condition from the previous question, If M = 40  what are the utility-maximizing..

  Unions contribute

Unions contribute to

  Find the monopolists profit maximizing price

A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/20,000, making the marginal revenue MR=1.70-Q/10,000. The marginal cost is constant at equal to 0.80. The fixed cost is 2,000. So, the total cost is..

  What is the implicit cost

A firm produces 8000 units of output, which it sells for $1.50 each. It produces this output using only labor and capital, and pays $7000 to its labor and $1500 to its capital. The firm's owner feels she could make $4,000 working somewhere else. What..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd